If a currency is “managed,” it means the country’s head honcho of finance...the central bank...has stepped in and laid down the law. Managed currencies mean that the price and exchange rate of that currency has been in some way purposefully tinkered with by the central bank.
There are a few ways currencies can be managed, like controlling the money supply, setting interest rates, banking regulations, reserve requirements, and acting as a safety net (think: bailouts) when things goes south. Most currencies are affected in some way, even if it’s small, by some intervention, making most currencies "managed currencies" in the pure sense of the term.
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Finance: What is a Dual Currency Bond?33 Views
Finance allah shmoop what is a dual currency bond Well
a currency duel would be way cooler to bonds One
dusty road in the wild west a saloon a gal
and a gun plan retired or called are paid whatever
they call bonds when they're dead Anyway a duel currency
bond is a bond where the principal and the interest
payments are made in different currencies like here's a bond
whose principal is paid off in u s dollars But
its interest is paid in euros and yeah whatever currency
being used for interest payments is called the base currency
Well why would you the investor of want one of
these things Well dual currency bonds or subject to exchange
rate risk In other words you're making a gamble not
just on an investment but on which way the exchange
rate will bounce That is if you own something it's
highly exposed two euros while then you're kind of making
a bet that the relative to the dollar the euro
zehr gonna appreciate mohr like the government's printing less of
them You have less inflation whatever because then if that
repayment currency appreciates well boom you're more in the money
Than just the interest you collected And if that currency
doesn't appreciate well there's always bank robbery is a last 00:01:21.189 --> [endTime] resort dual currency dueling currencies No
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